About Surf'N'Fries USA Franchise
Surf'N'Fries is a quick service restaurant franchise that brings a fun, beach inspired concept centered on gourmet french fries and seafood favorites.
The brand offers multiple format options to suit different markets and investment levels, including full restaurant locations, shop in shop units, kiosk setups, and food trucks.
The company has been franchising in the U.S.
Surf'N'Fries USA Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% to 8% of Gross Sales (varies by model) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Marketing Fee Contribution: Restaurant 2%, SIS currently 0% (right to collect up to 2%), KIOSK 2%, Food Truck 2%. Local Advertising / Required Spending: 3% of Gross Sales for all models. Marketing Co-Op: Up to 5% of Gross Sales, currently 0% for all models. | National brand fund |
| Total Investment Range | $57,600 – $522,300 | Includes build-out, inventory, working capital |
The investment range of $58K–$522K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% to 8% of Gross Sales (varies by model)) and marketing fee (Marketing Fee Contribution: Restaurant 2%, SIS currently 0% (right to collect up to 2%), KIOSK 2%, Food Truck 2%. Local Advertising / Required Spending: 3% of Gross Sales for all models. Marketing Co-Op: Up to 5% of Gross Sales, currently 0% for all models.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $30,000 | $30,000 |
| Rent and Lease Security Deposit | $3,000 | $25,000 |
| Utilities | $100 | $1,000 |
| Leasehold Improvements | $30,000 | $125,000 |
| Market Introduction Advertising Program | $25,000 | $25,000 |
| Furniture, Fixtures, and Equipment | $50,000 | $175,000 |
| Computer Systems | $4,500 | $35,000 |
| Insurance | $1,000 | $3,000 |
| Signage | $7,000 | $25,000 |
| Uniform | $300 | $300 |
| Office Expenses | $1,000 | $2,000 |
| Inventory | $10,000 | $20,000 |
| Licenses and Permits | $3,000 | $5,000 |
| Professional Fees (lawyer, accountant, etc.) | $1,000 | $3,000 |
| Travel, lodging and meals for initial training | $1,500 | $3,000 |
| Additional funds (3 months) | $20,000 | $45,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Controlling Interest: $10,000 plus any broker fees and other out-of-pocket costs. Non-Controlling Interest: $5,000. Convenience of Ownership: Up to $2,500, currently $0. |
| Renewal Fee | An amount equal to 50% of the then-current initial franchise fee generally charged to surf franchisees |
| Technology Fee | Currently not implemented but when implemented $150 per month (subject to increase by up to 15% of prior year's fee) |
| Audit Fee | All costs and expenses associated with audit, approximately $1,500 - $5,000 (if franchisee fails to submit required reports or under-reports gross sales by >3%) |
| Replacement / Additional Training fee | Currently, $250 per person per day not to exceed $500 per person per day |
| On-Site Training Cancellation Fee | Our then-current on-site training cancellation fee (May vary depending on type of scheduled training program and how far in advance you notify us) |
| Approval Of Products Or Suppliers | All reasonable costs of evaluation, approximately $500-$1,000 |
| Software Subscription | Up to $1000 per month |
| Non-Compliance Fee | $500 (may charge $250 per week thereafter) |
| Reimbursement Fee | Amount that we spend on your behalf, plus 10% |
| Late Fee | $100 plus interest on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law) |
| Insufficient Funds Fee | $30 (or, if such amount exceeds the maximum allowed by law, then the maximum allowed by law) |
| Costs Of Collection | Our actual costs |
| Special Support Fee | Our then-current fee, plus our expenses. Currently, $600 per day. |
| Customer Complaint Resolution | Our actual expenses |
| Special Inspection Fee | Currently $600, plus our out-of-pocket costs |
| Non-Compliance Cure Costs And Fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Liquidated Damages | An amount equal to Royalty fees and Marketing Fee Contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term. |
| Indemnity | Our actual costs and losses from any legal action related to the operation of your Franchised Business |
| Prevailing Party’s Legal Costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
| Deficiency Fee | $1,500 plus cost of reinspection and cost of enforcement |
| Customer Rewards, And Gift Cards | Currently not implemented by us but may be implemented in future (Fees for access management of customer rewards, and/or gift card system and redemption) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 14 Classroom Training Hours, 26 On-the-Job Training Hours |
| Classroom Training | 14 |
| On-the-Job Training | 26 |
| Training Location | Dallas, Texas or another location we designate |
| Additional Training | Franchisor may require Operating Principal, District Manager, and other employees to attend additional courses, seminars, and training programs. Tuition/attendance fees may be charged for these, and franchisee is responsible for all related costs (travel, lodging, dining, wages). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive for Site Selection Area, Protected for Designated Area/Trade Route |
| Exclusive Territory | No |
| Territory Size | Restaurant: a circle with a radius of one mile or population of approximate 50,000 – 100,000 people. SIS/KIOSK: within the confines of the retail facility. Food Truck: Designated Trade Route. |
| Description | For Restaurant, SIS, or KIOSK, a non-exclusive Site Selection Area is identified for site acquisition. Once a site is approved, a non-exclusive Designated Area (excluding Reserved Areas and Captive Markets) is granted. For Restaurants, this is generally a 1-mile radius or 50,000-100,000 population. For SIS and KIOSK, it's within the retail facility. For Food Trucks, a Designated Trade Route is mutually agreed upon. Franchisor retains all other rights inside and outside these areas, including operating/licensing different models, operating/licensing same models outside the area, advertising, and engaging in other food service businesses. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Restaurant: 10 years; SIS: 5 years; KIOSK: 5 years; Food Truck: 5 years |
| Renewal Term | Two additional, consecutive 5-year terms |
| Renewal Fee | An amount equal to 50% of the then-current initial franchise fee generally charged to surf franchisees |
| Renewal Conditions | Franchisee must notify franchisor 12-24 months before term expires, comply with obligations, satisfy monetary obligations, renovate/refurbish Outlet, have right to possession of premises/vehicle, comply with current qualifications/training, sign new Franchise Agreement (potentially different terms), Owners sign general release. |
| Transfer Fee | Controlling Interest: $10,000 plus broker fees/out-of-pocket costs. Non-Controlling Interest: $5,000. Convenience of Ownership: Up to $2,500, currently $0. |
| Transfer Conditions | Franchisor's prior written consent required (not unreasonably withheld). Conditions include: 120-day notice, payment of transfer fee and attorney's fees, copy of agreements, transferee meets franchisor's standards (educational, managerial, financial, moral character, business reputation, aptitude), all monetary obligations paid, Outlet refurbished, general release signed by transferor/owners, transferee signs current Franchise Agreement (terms may differ), transferee completes initial training. For transfers among existing Owners, new Franchise Agreement not required, but remaining Owners sign personal guaranty. |
| Termination for Cause | Curable defaults (10-day cure for non-payment of fees, 30-day cure for other non-compliance; 6 months to transfer interest upon death/permanent disability). Non-curable defaults (e.g., misrepresentation, bankruptcy, slander, abandonment, repeated defaults, felony conviction, unapproved transfers, poor operations threatening public health/safety, false records, offering unapproved products/services, refusal to cooperate with inspection, failure to pass quality assurance inspections, violation of operations policies, failure to maintain required hours, three or more default notices in 12 months). |
| Non-Compete Period | During term of franchise and for two years after termination or expiration. |
| Non-Compete Details | During term: Neither franchisee nor owners may have interest in or association with any casual, fast-casual, or quick-service restaurant, store-in-store, kiosk, cart, or food truck offering quick service chicken and fries as primary menu item or deriving >25% revenue from them, at any location within the U.S., its territories, commonwealths, or any country/province/state/geographic area where franchisor/affiliates use/registered Marks. After termination/expiration: Same restrictions apply for two years, but limited to former Outlet location or within a 5-mile radius of former Outlet or any other Outlet operating under the System and Marks. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchised Business must be supervised on-site by an Operating Principal. If the franchisee is an individual or general partnership, the Operating Principal is the individual franchisee or one of the general partners. If the franchisee is a business entity, the Operating Principal must hold at least a 10% equity interest. The Operating Principal must devote full-time efforts to management and operations. If multiple Outlets are operated and the Operating Principal does not devote full-time efforts, a District Manager must be appointed to devote full-time efforts to Outlet operations and management. Both must complete initial training and be approved by the franchisor. |
| Required Suppliers | Franchisees must purchase fixtures, furniture, equipment, interior/exterior signage, graphics, decor, trade dress, Outlet design consulting services, food products, spices, ingredients (proprietary or specified), fountain/bottled beverages, advertising/promotional materials, gift certificates/stored value cards, stationery, business cards, contracts, forms, bags, packaging, supplies bearing Marks, and other required goods/services from franchisor or designated sources. Computer hardware/software, uniforms, shirts, memorabilia, and retail merchandise must be purchased from franchisor or approved third-party vendors. |
| Supply Restrictions | Franchisor may require purchases from affiliated or third-party distributors. Franchisees must request written approval to purchase from unapproved sources for items with designated suppliers. Franchisor's approval criteria are not available to franchisees. For items without identified approved suppliers, franchisees may purchase from any supplier if items meet franchisor's specifications and brand requirements. |
| Franchisor Revenue from Suppliers | During our fiscal year ending December 31, 2021, neither we nor our affiliates received any revenue as result of these types of purchases or leases by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing, and we do not guarantee your notes, leases, or other obligations. |
Surf'N'Fries USA Franchise Earnings — Item 19
Surf'N'Fries USA does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Surf'N'Fries USA Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Surf'N'Fries USA System Growth
Surf'N'Fries USA currently operates 5 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 5 | 0 | 5 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Dr. Ram Sriram | CPA, CFE, Ph.D. for year ending December 31.
Surf'N'Fries USA Franchise — FAQ
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